The Alerian MLP Index Has Risen 10.0% in January



AMZ rose 2.3% last week

MLPs added to their existing gains in 2018 due to four strong weeks in January. The Alerian MLP Index (^AMZ), which includes 50 energy MLPs, rose 2.3% last week and ended at 302.7. Overall, the index has risen 10.0% since the beginning of the year.

Last week, MLPs’ gains were mainly due to strong gains in crude oil and natural gas prices. Crude oil rose 4.4% and ended the week at $66.1 per barrel. For a recent update on crude oil, read Why Oil Prices Could Lose Momentum.

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Out of the total 93 MLPs, 67 ended in the green, five remained unchanged, and 21 ended in the red. Among the top MLPs, Energy Transfer Partners (ETP), Enterprise Products Partners (EPD), Williams Partners (WPZ), and Plains All American Pipelines (PAA) rose 3.3%, 2.5%, 1.9%, and 1.3%, respectively. Later in this series, we’ll look at what drove the top MLP losers and gainers.

The Alerian MLP ETF (AMLP) ended the week 2.1% higher. AMLP has gained 9.6% since the beginning of the year. AMLP is outperforming the SPDR S&P 500 ETF (SPY) (SPX-INDEX) and the Energy Select Sector SPDR ETF (XLE) in 2018. SPY and XLE have gained 7.4% and 7.3%, respectively.

Fund flows

The Alerian MLP ETF and the JP Morgan Alerian MLP Index ETN (AMJ) saw net outflows of $18.0 million and $8.7 million in funds last week, respectively. The two funds have seen net inflows of $90.2 million and $13.6 million since the beginning of the year.

Next, we’ll discuss the top MLP gainers last week.


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